Labour Market Impact Assessment

Labour Market Impact Assessment (LMIA) is a report that an employer in Canada obtains before hiring workers overseas. Some job positions do not require an LMIA document before they can be filled by a non-citizen or permanent resident.

A positive LMIA indicates that a foreign national is needed to fill a specific occupation and is sent through a confirmation letter. The prospective worker can apply for a work permit with the confirmation of a positive LMIA. Positive LMIAs are valid for 18 months from the date of issuance.

When an employer looks to hire an employee that is not a Canadian citizen, and has submitted the relevant documents for the LMIA report, the Canadian immigration authorities would review the application to determine the implications hiring such a worker would have on the Canadian labour market in the short-term and long-run.

If an LMIA is required, it is mandatory and must be gained before offering a role to an overseas worker. If the LMIA is positive, the overseas candidate is then able to submit their application for a work permit.

LMIAl also seeks to establish that the job didn’t go to the foreigner to the detriment of a Canadian citizen or permanent resident and that the intending employer can pay the provincial standardised salary and benefits to the employee.

Applying for LMIA can be done based on the classification of the prospective employee as high or low wage. If the employee is paid according to the territorial median wage, they are placed in the low wage category while the category is high wage if they will be paid above the median wage.

If you plan to employ a high-wage foreign worker under the Temporary Foreign Worker Program (TFWP), present the transition plan and your LMIA application to the ESDC.

Your plan should be about your commitment to domesticate the foreign skills by helping the foreigner to merge into the national workforce, upskilling citizens for the role or doing both. Workers in this category are offered at or above the territorial median wage.

Employment and Social Development Canada (ESDC) reviews LMIS applications. You will be notified of a positive assessment of your application through a confirmation letter. You can then take the steps to hire foreign nationals afterwards.

Since you are assessing the labour market impact on hiring an international talent, the process is not complete for you until you successfully employ the prospective worker(s) in Canada.

Besides the LMIA report and receipt of the confirmation letter at your end, the intended worker has to apply for a work visa (where necessary) and secure a work permit. They’ll need to present this at these document to immigration officials:

• The job offer letter.
• Signed employment contract.
• A copy of the LMIA.
• The LMIA number.

Higher-skilled jobs for high-earning hires

• Federal and provincial job bank posting for at least 28 days (and until LMIA is issued).
• Two additional sources of advertising and one must have a national scope.
• A completed and detailed transition plan.

Higher-skilled jobs for low-earning hires

• Federal and provincial job bank posting for at least 28 days (and until LMIA is issued).
• Two additional sources of advertising and one must have a national scope.
• Lower-skilled jobs for high-earning hires
• Federal and provincial job bank posting for at least 28 days (and until LMIA is issued).
• Two additional sources of advertising and one must target under-represented groups.
• A completed and detailed transition plan.

Lower-skilled jobs for low-earning hires

• Federal and provincial job bank posting for at least 28 days (and until LMIA is issued).
• Two additional sources of advertising and one must target under-represented groups.

A Canadian employer considering hiring foreign high wage workers and high-earning talents for lower-skilled jobs should show that they are taking appropriate steps to address their dependence on imported labour. A major way to show good faith is to take proactive steps to train and recruit domestic workforce.

Transition plans should show that in the long term, a Canadian worker or Canadian residents and citizens can fill such positions. The plan is an addition to the existing recruitment and advertising requirements for employing international talents.

• The activities for the plan include:
• Three additional recruitment activities.
• An additional activity that targets underrepresented groups.
• An activity to help temporary foreign talents transition to permanent residence.
• A projected estimate of the Canadians or permanent residents they aim to recruit through these activities.
• Proposed timelines for the listed activities.
• Submit the results of the implemented activities as feedback to ESDC.

As a Canadian employer, you cannot hire a temporary foreign worker legitimately until you have proved that you could not find a suitable domestic worker after making significant efforts.

Ideally, your effort should include advertising the position for at least 4 weeks on the Government of Canada’s Job Bank portal or other boards with national reach. You must also take deliberate steps to ensure the advertisement reaches minority groups.

Some employers are not required to receive LMIA approval before they can employ temporary foreign workers. The International Mobility Program provides exemption codes for employers’ recruitment efforts.

However, these exemptions do not erase the need for a work visa (where necessary) and work permit. When applying for jobs as a foreign worker, you still need your work permit code.

These overseas workers are exempt from an LMIA approval:

• Canada-International Free Trade Agreements – If the foreign worker is a citizen of a country that has a FTA with Canada.
• Global Talent Stream – If the position you are looking to fill is on ESDC’s Global Talent Occupations list. The concerned foreign worker will also receive fast-tracked work permit processing.
• CUSMA Countries – If the foreign worker is from the US or Mexico, they are likely to be eligible for LMIA exemption.
• Intra-Company Transfer Program – If a foreign company transfers their foreign worker to Canada through an ICT program.

LMIA application fee is CAD $1,000 for each job post. This fee is per position not per application and it must be paid by the employer, not the prospective employee.

If an employer is looking to apply for 5 positions, the fee would be CAD $5,000. This fee does not include any associated processing fee (like legal) that may be accrued prior to the approval.

Immigration, Refugees and Citizenship Canada (IRCC) in conjunction with Employment and Social Development Canada (ESDC) are responsible for bringing foreign employees into Canada sustainably. The Labour Market Impact Assessment (LMIA) guarantees that foreigners’ opportunity to work in Canada does not compromise domestic workers’ potentials.